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Business Development Basics
- 1. B U S I N E S S D E V E L O P M E N T B A S I C S D R I V I N G R E V E N U E G E N E R AT I O N P R E S E N T E D B Y J O E H I R S C H 0 6 . 0 2 . 1 7
- 2. Agenda • What do you want to learn? • Marketing vs. Business Development • Business development – why is it important? • Why is the offer of value? • Client development process • Sales in the A/E/C client acquisition process • Prioritizing BD tasks & supporting activities • Skill building and transitioning • Client retention process • The End
- 3. What do you want to learn?
- 4. How do you define Marketing?
- 5. The majority of marketing theory discussed in business school is designed to be applied to the manufacturing, distribution, and consumption of consumer goods (products and services) This helps to explain why the A/E/C industry lacks a standardized definition of “marketing”
- 6. Basic Definition of – Marketing: all activities involving the promotion and sales of goods between manufacturing and customer delivery (As taught at the Stuart School of Business at the Illinois Institute of Technology) The five P’s – Product (service), Place (position), Promotion, Price, People
- 7. In many business sectors, business development and sales are considered subsets of marketing. • In the A/E/C sector, sales is often considered a subset of business development • Marketing and BD in the A/E/C sector are often viewed as co-dependent but separate business disciplines Conceptual lines between marketing, BD, and sales in the A/E/C sector
- 8. Have I confused you yet?
- 9. Business Development – Why is it Important? • It (along with marketing) directly supports an organization’s strategic plan by: – Developing and retaining clients – Creating a hedge against revenue-stream peaks and valleys • It drives and supports the firm’s technical core competency • It is critical to an organization’s long-term growth and stability
- 10. How is the offer of value?
- 11. Before BD activities are executed, an organization must have a well-defined unique value proposition for its target audience(s).
- 12. An organization’s senior management and marketing department need to collaborate in developing a unique value proposition that integrates well with its overall brand voice. • Prospects base buying decisions on perceived benefits and risk • The return on an organization’s investment in client acquisition is related to: – How effectively they target their prospective audience – How persuasively they differentiate the benefit of their offer.
- 13. Where does the client development process begin?
- 14. Overview of the client development process
- 15. Utilize a CRM system (e.g.: Deltek, ACT!, Salesforce, Cosential)
- 16. The Process • Step 1 - Research market segments – What are the traits of a good client for your firm? – Identify suspects that appear to exhibit desirable traits
- 17. The Process • Step 2 – Contact target suspects –Phone calls –Referrals –Networking –Marketing communications (e.g.: direct mail)
- 18. The Process • Step 3 – Qualify the suspect – Cast away or prospect? o Questions to answer: o Has interest in your firm? o Has professional services need? o Has recourses (e.g.: capital)?
- 19. The Process • Step 4 – Build relationship with prospects –Build trust –Offer assistance –Maintain contact
- 20. Where Should Meetings Occur?
- 21. The Process • Step 5 – Identify needs – Probe with questions – LISTEN – Propose offer – Sell & win project
- 22. The Process • Step 6 – Develop CARE program for client – Obtain referral and/or another project
- 23. • Institutions/Owners – formal interview • Developers – less formal process involving negotiation • Architects/Engineers – reciprocate leads, cost (transactional), references Sales Activity in the A/E/C client Acquisition Process
- 24. Prioritizing BD Tasks 1. Follow-up on pending proposals (very important / level of effort easy) 2. Prepare for interviews and/or meetings 3. Develop proposals (collaborative process with technical staff) 4. Meet with prospects and clients 5. Schedule meetings (level of effort intense / time consuming) 6. Participate in networking opportunities 7. Work on planning and strategy
- 25. Skill building and transitioning • Be careful of what you ask for and be yourself! – Audit meetings – BD research for target suspects – Participate in networking events – Practice and polish presentation and persuasion skills – Work with team in planning BD and sales activities – Entrench yourself with information on consultative selling, good sources: • Jeffrey Gitomer www.gitomer.com • SMPS www.smps.org • ZweigWhite www.zweigwhite.com
- 26. Client Retention Process • CARE (Client Attraction Retention & Expansion) • Yields high ROI • Plan on yearly basis • Need to know contacts’ personal interests • Hospitality & ongoing contacts
- 27. The End • The end of me for now, and onto the continuation of your success!
- 28. KTGY ARCHITECTURE + PLANNING : KTGY.COM T H O U G H T D E S I G N I N S P I R A T I O N A R C H I T E C T U R E P L A N N I N G K T G Y . C O M